Tariff Tiff: Challenging Trump's New Trade Taxes

Two U.S. small businesses have filed a lawsuit against President Donald Trump's latest tariffs on goods from 60 nations, arguing these tariffs exceed his authority. The controversial tariffs, part of Trump's foreign policy strategy, were imposed under Section 301 of the Trade Act of 1974.

Two U.S. small businesses are challenging President Donald Trump's latest round of tariffs imposed on goods from 60 trading partners, arguing it oversteps presidential authority in taxing imports. The lawsuit, filed in the U.S. trade court in New York, contends the tariffs lack necessary country-specific findings on 'forced labor' to be legally warranted.

Backed by a nonprofit legal group that has successfully contested previous tariffs, the businesses claim the new tariffs attempt to re-impose taxes already deemed illegal by the U.S. Supreme Court. The Trump administration's new tariffs of 10% and 12.5% have been placed on the European Union and others, citing their insufficient action against exporting goods made with forced labor.

The lawsuit argues that while Trump invoked Section 301 of the Trade Act of 1974 to justify the tariffs, this section has traditionally targeted specific nations and industries. Instead, the new tariffs were imposed broadly, differing from past presidential practices.